Circular No. ES/163/2020-21 28th May, 2020
To : Members of the Council
Sub: Pre-shipment and Post-shipment Export Credit – Extension of Period of Advance
As you may be aware, due to the outbreak of Covid-19 pandemic, the exporters have been facing genuine difficulties such as delay / postponement of orders, delay in realisation of bills, etc.
In this regard, RBI has already permitted the period of realisation and repatriation of the export proceeds to India to be increased from nine months to 15 months from the date of export in respect of exports made upto July 31, 2020.
In line with this relaxation, the Reserve Bank of India has now issued Notification No.RBI/2019-20/246 dated 23rd May, 2020 increasing the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks from one year to 15 months, for disbursements made upto July 31, 2020.
Members may kindly make a note of the above.